EU yards vs US Yards..pricing

USD vs EUR

Dear Mark,

I think in life you get what you pay for.
Mercedes Benz will cost dearer than Chrysler.
Client always chooses.

As in any other transaction, it comes down to whether the yard is running at capacity or has spare capacity. Spare capacity is always negotiable but only to a point.

EU Yards Pricing

Mark,

Choose a yard without a broker ( saves 5 % )
Choose the right flag ( saves 10-20 % Vat ) and bunker tax free fuel
Choose the right renomated Shipyard ( saves 50 % on the Sales price later )
Buy all Tenders and other Equipment directly in US etc. ( saves the exchange lost 20% )
Choose the right management Company ( saves 10-20% of the running costs )

I my opinion the purchase price is small against the year to year or day to day running costs.
Choose the right serious working Crew and save much money.

Try to get a better or longer Warranty from the European Shipyard and that takes you on the saver side for the next 2-3 Years.

Open your eyes or open your pocket that depends on you.

I agree with your statement EXCEPT opting to save 5% on a broker. A broker should be involved with the build process as a quality control and cost control for the owner. He/she is there to make sure that the YARD doesn't overcharge for things that otherwise might get lost in the myriad of details, construction phase gets rounded corners, etc.

Maybe the owner should wonder how the MANAGMENT COMPANY or CREWING AGENCY has made themselves so "invaluable". Since these were traditionally fuctions of Captain, as the boats got bigger, it became necessary and cost effective to outsource certain job functions to on-shore support. Same is true for brokerage in the business sense. Time is the most valuable asset to a guy who is worth $1 Billion or more. He hires talent where it is needed, because he doesn't have the time to tend the galaxy of details in a build that in some cases can be a decade of work.

Very interesting to see how onboard billets were consolidated in commercial shipping down to a 24 person crew, and yacht industry outsources every funtion to "specialists" with crews exceeding 60, shoreside support, etc....

Hi,

I remember when in year 1999 we sold an 82' to an US customer from Chicago. I was working in a shipyard in Europe (in Spain) and we offered him to sign contract in spanish currency (pesetas). In that moment one US dollar was 125 pesetas. The owner prefered to sign contract in US dollars.

We took the risk, but when during construction dollar value felt down and the change rate arrived to: one dollar = 160 pesetas. We had a nice profit with the peseta exchange rate increase.

I must say that same year we signed other contracts (95') with US customers, but they prefered signing in pesetas, so ... they got a nice discount in last payments, as they had US dollars in their banks and they were paying us in pesetas.

Actually, the Euro rate has arrived to a really high quotation, ... it's a problem for selling european goods in US market.

In Europe, almost all shipyard make yacht price lists in Euro (except british shipyards). And it's difficult for them to manage this problem Euro vs US dollar.

It always deppends of in wich side are you placed?

Some time ago it was nice to export goods from Europe, now .... you are much competitive in pricing!!!! Consider this and use it to increase your commercial balance!!!! Export, export, export!!!!!

Regards,

Sarnacho

I agree that there needs to be someone involved on the Owners side to ensure he is getting value for money etc but do you really think that the Broker is the best person for this?

Cheers

K1W1

Using a broker

well, i agree that a broker is not the right person on the owners side.
I think a very experienced technician should be involved in buying a yacht. A broker only presents the best yacht with the best commission.
Please correct me if i am wrong.

Paying 5 % for a broker who make a contact between the seller and the buyer is much money and after this you have to check the technical status of the yacht again out of your pocket.

Successful people surround themselves with talented people- albeit a broker, captain, technician, engineers, etc. A good business person invests personal time with his/her clients and builds their reputation bysaying what they can do and doing what they say.

The stereotypical broker that you are refering to sounds a bit "used car salesman" to me?! In sales, regardless of what you are selling, it costs more to find new customers than to maintain current ones. So, a good broker or salesman who is creating long-term clients doesn't sell just for the commission, he/she should educate the buyer/seller what is the best opportunity for their long term goals too.

Weather you are doing a 100,000 deal or a 10,000,000,000 business deal, if you take care of your client's needs you never have to worry about getting paid. Money always comes to an honest business person of character.

To quote Keny Rogers-- You never count your money, when your sitting at the table... there'll be time enough for counting, when the dealing is done.

I hate feeling chased for my money, but good advise and genuine concern is priceless to me.